Cash Delivery Service Providers in Zimbabwe 2011 Review Prepared on Behalf of the Cash Transfer Working Group in Zimbabwe Produced with the support of the Cash Learning Partnership Author : Dr Deborah Gourlay, CaLP Country Coordinator, Zimbabwe 1 Final Draft, December 2011 The Cash Learning Partnership : ii Contents CONTENTS Section 1 : Introduction 1 1.1 Cash Transfer Working Group in Zimbabwe 1 1.2 Rationale and Scope of the Database 1 1.3 Summary of Services Provided and Access Restrictions 1 Section 2 : Banks and Financial Institutions 3 2.1 Central African Building Society (CABS) 3 2.2 People‟s Own Savings Bank (POSB) 8 2.3 TN Bank (TN Cash Card) 14 2.4 TETRAD e-Mali (PvT) Ltd 21 2.6 Barclays Bank (Barclays Smart Card) 26 2.5 Kingdom Bank (Kingdom Cell Card) 30 Section 3 : Mobile Phone Transfer Companies 33 3.1 Econet Wireless Zimbabwe Ltd. (EcoCash) 33 3.2 NetOne (OneWallet) 37 Section 4 : Merchants and E-Voucher Providers 39 4.1 OK Zimbabwe (Shop Easy Card) 39 4.2 Redan Mobile Transactions (SPLASH Vouchers) 42 4.3 Connect the World 45 Section 5 : Appendices 50 Appendix 1: Persons Contacted to Request the Data Form 50 Appendix 2: E-mali Current Distribution Points 51 Appendix 2 : Connect the World Rural Agricultural Inputs Payment System 55 Appendix 3: Connect 24/7 57 iii Section 1 : Introduction 1.1 Cash Transfer Working Group in Zimbabwe In order to generate and promote on-going collaboration and learning around the use of cash transfers, in 2009 the members of the Protracted Relied Program (PRP) formed a Cash Transfer Working Group which meets bi-monthly. This group later became a working group of the UN led Livelihoods, Infrastructure and Institutional Capacity Building (LICI) Cluster. Membership includes, NGOs implementing the PRP, UNICEF ,the World Food Program (WFP) and donor agencies . Objectives of the Cash Transfer Working Group are to: Create a platform for sharing lessons learned. Synthesize and package the lessons learned for wider sharing beyond CTWG & LICI Cluster Develop a database of who is doing what where as programmes scale up (the 3W tool). Share information on studies conducted with the group Establish a repository of studies to learn from Harmonise approaches used in cash transfer projects. 1.2 Rationale and Scope of the Database Over the past few years Zimbabwe has witnessed a significant increased in the use of cash transfers within policies and programs providing humanitarian aid. This has resulted is an increasing desire on the part of humanitarian agencies to partner with private sector financial service providers in the delivery of cash to the beneficiaries within relief and recovery programs. In order to facilitate such partnerships, the multi-agency Cash Transfer Working Group, with the assistance of the Cash Learning Partnership, set out to compile a database of financial service providers with expertise relevant to the delivery of cash transfers within humanitarian programs. The focus of the database is financial service institutions and technology-based money transfer agencies. The database thus does not include cash-in-transit (CIT) or security companies. It is intended that the completed database will be made available to all organisations involved in designing and implementing humanitarian cash transfer programs in Zimbabwe, and to relevant donor organisations. 1.3 Summary of Services Provided and Access Restrictions The range of services provided by the service providers who completed and returned a data form are summarised in Table 1. Key requirements and restrictions for accessing the payment method are summarised in Table 2. 1 Table 1: Summary of Services Provided Name Bank Smart Shop Point Open Mobile Transfers Account card Card / of System1 Banking to Voucher Sale Machines Cellphone Central African Building Society (CABS) √ √ √ √ √ People’s Own savings Bank (POSB) √ √ √ √ √ √ TN Bank √ √ √ Tetrad e-Mali √ √ √ Barclays Bank √ √ √ √ √ Kingdom Bank √ √ √ √ Econet Wireless √ NetOne √ OK Zimbabwe √ √ Redan Mobile Transactions √ Connect the World √ √ √ Table 2: Summary of Requirements / Conditions Name Bank Official Literacy Age Mobile Internet Account ID Required Limit Network connection Requ’d Requ’d Required required Central African Building Society (CABS) √ √ √ √ √ People’s Own Savings Bank (POSB) √ √ √ √ TN Bank √ √ √ to load card Tetrad e-Mali √ Barclays Bank √ √ 18+ √ Kingdom Bank √ √ to load card Econet Wireless √ √ 16+ √ NetOne √ √ OK Zimbabwe √ √ Redan Mobile Transactions √ Connect the World √ √ 1 Open systems are redeemable at payment points other than those belonging to the providing institution (e.g. Zimswitch payment points, etc.). 2 Section 2 : Banks and Financial Institutions 2.1 Central African Building Society (CABS) ORGANISATION DETAILS Company / Organisation Name CABS Contact Person Arthur Nyazika, [email protected], (include email and telephone number) 0774 647 710 Type of Organisation / Company (e.g. bank, Banking Institution merchant, mobile phone company, etc.) SERVICES FOR TRANSFERRING CASH TO BENEFICIARIES Describe the services offered which could Debit Cards (Open and Closed Card Systems) and be used for transferring cash to Mobile Banking beneficiaries of humanitarian programs. Can the delivery system be used for Debit Cards – offer savings account, access to savings or for other functions such as account through point of sale devices, ATMS and remittances, bill payment, bulk SMS etc? internet. Bill payments, Transfers, RTGSs available. If „Yes‟, please specify types of functions Mobile Banking – Facilitate Sending and Receiving available and any associated charges. Funds, Debit Card Optional Is the cash delivery system and / or System is computerised, Database is computerised database computerized? and all devices on network received live data Does the systems allow the monthly Yes, amounts transferred are decided by donor transfer amount to be varied? (e.g. to adjust agencies and can be changed anytime for household size or in response to inflation) Can large amounts of small denomination ATMs are dispensing $20 denominations, notes be provided, e.g. through ATM, Point of Sale and Mobile Bank Devices can disperse mobile bank or point of sale device, etc.? any amount, any denomination on condition the respective merchant has received the denomination from his sales Would the system have the capacity to Yes, Debit Cards are designed to allow beneficiaries deal with large number of beneficiaries outside banking halls. To make use of Point of Sale without disruption or long queues? Devices, ATMS and Internet Banking. Mobile Banking makes use of numerous merchants. Which humanitarian organizations have MercyCorps, HELP and Oxfam. you previously worked delivered cash for? ACCOUNT CONDITIONS Identity documents required by beneficiary National I.D (e.g. National ID, birth certificate etc.) Other Beneficiary Information or Proof of Residence (or letter from Donor), Passport Size Documents Required for Registration and / Photo. or Account Opening Minimum Account Balance None (state “none”, or specify amount) 3 HOW THE CASH TRANSFER PROCESS WORKS Briefly outline the process (required actions and responsibilities of humanitarian Agency and Cash Transfer Service Provider) The payment channel: there are three means by which organisations can effect payment from their main transaction account to cardholders. These are: Via a point of sale (POS) device. Handling payments through a POS normally best suits organisations wishing to make individual payments where there is direct interaction with the payee. This could be, for example, where a smallholder farmer is receiving payment for crop supplies, or where an individual is to be issued with a support payment. The organisation effects an immediate transfer of funds via the POS onto the payee‟s card in the direct presence of the payee. Via the Paynet bulk payment gateway. Paynet gives organisations the ability to send payments to multiple recipients at a single sitting. Technical developments have recently been completed which allow transfers onto closed card scheme accounts. Such capability is ideal for the payment of salaries, regular support contributions or payouts to a large number of individuals scheduled for set points in a month. Via a file upload. This system has been employed mostly for non-regular bulk payments. It has been used by NGO clients for the provision of electronic “vouchers” payments to programme beneficiaries. In such cases, CABS receives a file from the client with the names and card numbers of the beneficiaries and arranges for the transfer of the funds from the NGO account onto the cards. LEAD TIME REQUIRED FOR SERVICE PROVISION How long would it take to register Cards are pre-opened, what determines processing time beneficiaries, set up accounts, issue cards, is availability of beneficiaries and required etc? (please indicate set-up time required documentation. Opening one account takes 2minutes. from signing of contract) TRANSFER SYSTEMS INVOLVING PAYMENT POINTS IN MERCHANTS Can cash-back be provided? Yes, at all point of sale machines Can beneficiaries receive the whole Yes, on all open Cards Systems, all charges accrue amount as cash? to Donor and not Beneficiary. On closed card systems beneficiary incurs 1% withdrawal charge. With Mobile Banking Client will also incur a 1% withdrawal charge Specify any limits on the proportion of the None cash transfer which beneficiaries can receive as cash. GEOGRAPHICAL COVERAGE, ACCESSIBILITY What is the geographical coverage of your